COST ACCOUNTING
STANDARD COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Volume
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Spending Variance
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Efficiency Variance
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Quantity Variance
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Detailed explanation-1: -This is also called as spending variance.
Detailed explanation-2: -The difference between budgeted variable overhead for actual hours and standard overhead is the variable overhead efficiency variance.
Detailed explanation-3: -The difference between actual variable overhead and budgeted variable overhead based upon actual hours is referred to as the variable overhead efficiency variance.
Detailed explanation-4: -The fixed overhead spending variance is the difference between the actual fixed overhead expense incurred and the budgeted fixed overhead expense.
Detailed explanation-5: -Variable overhead spending variance is the difference between actual variable overhead cost, which is based on the costs of indirect materials involved in manufacturing, and the budgeted costs called the standard variable overhead costs.